>> the democratic battle goes late into the night in iowa. hillary clinton. bernie sanders. the polls surprisingly close there. that as there is shrinkage on the republican debate stage. president obama preparing to give his final state of the union address. what you can expect in tonight's speech. and breaking news this morning. deadly bomb blast in turkey at a popular tourist spot in that city. good morning. welcome to "early start." i'm john berman. >> i'm christine romans. it is tuesday, january 12th. 5:00 a.m. in the east. democratic face-off deep into the night in iowa. hillary clinton and bernie sanders at a candidate forum in a state where the polls are surprisingly close this morning. clinton with just the tiny three-point lead in the latest

survey. that explains why she is going after her opponent on gun violence and electability. we have cnn's brianna keilar with more. >> reporter: good morning. hillary clinton and bernie sanders in the hawkeye state as the race tightens. in the polls, they are at a statistical tie. something bernie sanders is thrilled about and the clinton campaign is not. both candidates trying to draw differences with each other at the brown and black forum over issues that are facing african-americans and latino-americans. >> clinton has been criticizing you. have you noticed she is getting more aggressive with you? >> yes. it could be the inevitable candidate for the democratic nomination may not be so

inevidei inevitable today. >> can you tell me if bernie sanders can win the presidency? >> anybody can win. who would have thought that donald trump was leading in the national polls. those of you who thought about running, take heart. >> reporter: guns have been playing large in the democratic race here in the final weeks. hillary clinton taking aim at bernie sanders over his more moderate record. bernie sanders, for his part, saying he is open to reconsidering his stance on immunity for gun makers and gun store owners should weapons producers sell be used in a crime. thank you. hillary clinton has two events in iowa today before heading to detroit for a fund-raiser with michael bolton. her daughter chelsea stumps in new hampshire. the first solo campaign trip of the year. sanders will be in washington for the state of the union address. a lot of overnight developments in the presidential

race. perhaps while you were sleeping. this man was not. zachary wolf. managing editor of cnn digital. good morning to you. donald trump was on "the tonight show with jimmy fallon." these polls, surprising polls which have bernie sanders close in iowa and leading hillary clinton consistently. leading hillary clinton in new hampshire. this is what trump had to say. >> i think she is having a tough time. she's got some guy who -- i mean he should be easy to beat. how can you lose like this? he really isn't even a democrat. he said he's a socialist. i think he may be a step beyond a socialist. she is not doing well. she is about tied in iowa. she is losing new hampshire, which is amazing. >> is hillary clinton in trouble this morning, zach? >> i definite don't think she is in the place she thought she would be right now a few short

weeks before people caucus and vote. i don't know if it is right to say she's in trouble. i'm sure the folks in her brooklyn campaign office are looking at polls that she her behind. she has been consistently behind for a while in new hampshire. perhaps tightening in iowa. they can't be happy about it. you see her tacking to the left on some of the things. talking about immigration and how she would stop raids on undocumented. that tack to the left for her. this new tack she will put on the wealthy. the attack to the left for her. you see her move into the bernie sanders space. >> bernie sanders has been consistent with hammering on inequality and raising minimum wage and it is unfair for the working man. listen to what joe biden, this interview with joe biden. it is almost as if he went over

backwards over the authenticity he said over bernie sanders. >> there used to be a basic bargain. if you contributed to the profitability to the enterprise, you got to share in the profit. that has been broken. productivity is up. wages are stagnate. >> hillary is talking about that as well. >> well, it is relatively new for hillary to talk about that. hillary's focus is on other things up until now. that is bernie's -- no one questions bernie's authenticity on those issues. >> ouch! >> curious comments from the president who he recently said he regrets every day his own decision not to jump in. maybe he is doing a little rear-view mirror field testing. it is interesting to hear him say nice things about sanders. >> to be fair, hillary clinton was running the state department

for years. >> and it seems like joe biden is going out of his way to not say good things about clinton. i want to shift to the republican side of the race. in iowa, from quinnipiac you have donald trump in front of ted cruz. marco rubio in third. in new hampshire, donald trump out by a much bigger margin. the bunch up for second. cruz, rubio and carson and chris christie. interesting stuff with trump out in front in new hampshire in this dog fight in iowa, zach. >> that's right. you know, we thought that ted cruz or i don't know if you thought about it, it looked like ted cruz would be the guy in iowa. he was coming up there. trump surging again. that's really interesting. ben carson, who for a while was in front, isn't much of an issue in that polling. trump has been ahead in new

hampshire and stay there s ther. he is the only candidate over 30% in both states. he is clearly the frontrunner. going into the first caucusing and voting, it is hard to imagine someone making a play at this point. although anything can happen. you know to start to challenge him. to see that grouping there for second, let's call that the chief trump challenger. the people who want to win second is the person who will emerge as the challenger. >> three weeks to the first votes. things will change rapidly. >> we are running out of time to say the polls are early. the polls are almost actual voters going to the polls. it is not so early anymore, zach. >> it is not early. this is happening. it is happening soon. we have a couple coming forward on the republican side and democratic side.

as it has been with trump for so long, everyone keeps waiting for reality to set in, i guess. voters keep coming or people answering polls keep coming back and saying his message is resounding. whether or not things will change, i can't tell you. anybody who says they know what will happen in the race is not telling the truth to you. >> you are right. zachary wolf. we will talk to you again. thank you for getting up early for us. the first votes are three weeks from yesterday. it is happening soon. there is tonight action. it will be president obama's seventh and final state of the union address. the president will not rollout a to-do list. instead, aides say the president will try to rise above election year acrimony and celebrate what they call a vision of one american family. cnn's jim acosta with more from the white house. >> reporter: john and christine, officials say the president will deliver an unconventional state of the union address. the president will talk about

the america he hopes to see after he leaves office, but there are still a few things he wants to accomplish over the year. white house aides say he will defend his executive action on guns and talk about the plan to close the prison at guantanamo bay. the past criminal justice reform and take the fight to isis. as tribute to the victims of gun violence, there will be an empty seat in the first lady's box. there will also be a touch of nostalgia as he looks back to the historic 2008 campaign and point to the first supporter. edith chiles. the white house has hinted there will not be a long laundry list in the state of the union. acknowledgment that time is winding down and congress is looking to the next election. john and christine. thank you. tune in for cnn's live coverage of the state of the union tonight at 7:00 p.m. with erin burnett out front and special

edition of ac 360. the president's address at 9:00 p.m. the republican response by south carolina governor nicki haley well follow the speech. we have breaking news this morning. a deadly explosion in istanbul, turkey. the governor of the province announced ten people have been killed at this point by the blast. at least 15 people wounded. this is new information coming in to us. let's get the latest from cnn's arwa damon live on the phone from istanbul. arwa, what are you learning? >> reporter: john, the explosion happened at 10:15 a.m. i heard it and a massive plume of white smoke emerging from what really is the heart of istanbul's historic tourist district. security forces moving in very quickly along with ambulances

and fire trucks. we do not yet know the nationalities of the injured or fatalities. all those wounded have been moved to various hospitals. no clear statement on what caused the explosion, but a lot of speculation that this could be some sort of terrorist attack. turkey is in a precarious situation at this stage. battling isis on one hand, but also having the fight that is taking place with what turkey is dealing with the terrorist organization. and if you look at what has happened in turkey over the last seven months, you have the october devastating double suicide bombing that killed over 100 people causing the single largest attack in turkey's

modern day history and the attack that happened in the border town over the summer. those two attacks, turkish officials said were the work of isis. since then, there have been massive sweeps throughout the country. hundreds of people with suspected ties to terrorist organizations. isis and also other smaller ones that operate here have been rounded up, but this is certainly a country that has been on edge for quite some time. if this is in fact confirmed to be a terrorist attack, it is going to be quite a blow to the country at a very fragile state. this tourist area is vital to the turkey economy. turkey is in a shaky position having very tense relations at this stage with russia after

turkey shot down a russian fighter jet. and speaking to turkish officials, they are very aware of how difficult the security challenge they face at this stage. we do not know what caused this explosion, but if it is in fact deemed to be an attack of terrorism, it will be a very, very severe blow to a country that is already on edge at this stage. john. >> turkey battling so many issues over the last several months and years. in fact, this attack today, at least ten people dead if an area if you target western tourists and foreigners in the country, this square, sadly, would be the place to do it. arwa damon for us in istanbul with the latest information. arwa, we will talk to you in a bit. also time for an early start on your money. right now, stock futures pointing higher. world stock markets mixed.

companies reporting company earnings and the season is expected to show profits down 5%. crude oil is down $30 a barrel. oil has crashed almost 70% from the peak 18 months ago. new reports that oil's recent plunge could cause a rash of bankruptcies for energy companies. some states with economies tied to the energy sector could see a slump in housing. home prices in north dakota are 20% over valued according to one study. other states where oil could hit housing is wyoming, west virginia and alaska. new video capturing the military raid on mexican drug lord el chapo's hideout and new information on how he almost got away again. yet another tunnel. stay with us.

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early morning raid that led to the capture of drug lord el chapo guzman. mexican forces stormed el chapo's safe house in los mochis, mexico. he was captured hours later after somehow slipping away during the operation. let's get more from cnn's martin savidge. >> reporter: good morning, john and christine. late yesterday afternoon, a cnn crew was able to gain access to the safe house in los mochis that belonged to el chapo. remember, this is where the raid took place. no surprise when they got inside, they found the place in shambles because it was a mini war that took place as a result of the raid by authorities. it was eventually successful. one of the things that is interesting about the video is that it revealed the escape

mechanism by which el chapo was able to get out of the house. in a closet, secreted small set of stairs to get to the sewer system and the sewer system gets him away from the home. all of that is really kind of revealing as to the kind of detail and planning that he had. then we get to the sean penn interview. a lot of tron controversy about that. the law enforcement said that is essential as to the capture. it is clear that interview in october somehow led them in the direction of several months later, a safe house in january. but still, you have to give credit to the mexican special forces. they made that entry. they conducted it safely. they only had one slightly wounded soldier. there were five gunmen injured, but no civilian was injured. thank you, martin. lawyers for bill cosby asking a

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>> the gumption shows why he earns almost $7 million a season. >> coy, thank you. obviously you enjoyed the game. >> it is early for him. he had a great 24 hours. the hillary clinton campaign. is it in serious trouble? bernie sanders says so. he's going after the democratic frontrunner as a poll shows that maybe she is not so much of a frontrunner. that's next. coughing...sniffling... and wishing you could stay in bed all day. when your cold is this bad... ...you need new theraflu expressmax. theraflu expressmax combines... maximum strength medicines available without a prescription... ...to fight your worst cold and flu symptoms... ...so you can feel better fast and get back to the job at hand. new theraflu expressmax. the power to feel better.tm

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turkey at a popular tourist destination. welcome back to "early start." i'm christine romans. >> i'm john berman. hillary clinton and bernie sanders at a candidate forum in a state where the polls are surprisingly close this morning. hillary clinton with just the tiny three-point lead in the latest survey which explains why she is going directly after her opponent on issues of gun violence and electiability. cnn's brianna keilar has more. >> reporter: hillary clinton and sanders here in the hawkeye state as the race tightens. in the polls, they are at a statistical tie. bernie sanders is happy about it and the clinton campaign is not. the candidates answered questions at the brown and black forum where they faced issues for african-americans and

latino-americans. >> clinton has been criticizing you. have you noticed she is getting more aggressive with you? >> yes. >> why is that? >> i don't know. it could be -- >> you tell me. >> -- it could be the inevitable candidate for the democratic nomination may not be so inevitable today. >> final question. can you say categorically tonight that bernie sanders cannot win the presidency? >> anybody can win. who would have thought donald trump would be leading in national polls. for you ever thought about running for president, take heart. >> reporter: guns have been playing very large in the democratic race here in the final weeks. hillary clinton taking aim at bernie sanders over his more moderate record. bernie sanders, for his part, saying he is open to reconsidering his stance on immunity for gun makers and gun store owners should weapons producers sell be used in a

crime. john and christine. >> thank you for that. helping us break down the race is zachary wolf, managing editor of cnn digital. so nice to see you up bright and early. i want to start with something joe biden said. i'm fascinated by the piece of sound from the interview with the vice president talking about income inequity and authenticity of bernie sanders on income inequality. listen to what he said. >> there used to be a basic bargain. if you contributed to the profitability of the enterprise, you used to share in the profits. that is now broken. >> hillary is talking about that now. >> well, it's relatively new for hillary to talk about that. hilla hillary's focus is on other things up to now. that is bernie's -- no one questions bernie's authenticity

on those issues. >> zach, what do you make of that? >> it is befuddling to hear joe biden talk about sanders like that. hillary clinton hasn't been endorsed by anyone in the white house and they will not endorse anybody, i don't think, in this primary fight. to hear him say something, you know, sort of layout her struggles. you wonder if joe biden is thinking how he might have done things. he said recently he regretted not running for president. the other thing at play is president obama had the new york times op-ed, saying would not campaign for anyone who is not sharing his opinion on the stance on guns. maybe they are giving a little bit to bernie after that message on guns. maybe joe biden sort of -- maybe

he really is in what bernie is selling. it is interesting. i'll tell you that. >> in brooklyn, they have you saying, come on, vice president joe biden, can you say anything nice about our candidate? one candidate they don't expect to say anything nice is donald trump on "the tonight show." he was kind of stirring the pot talking about the close democratic race right now. listen. >> she is having a tough time. she has some guy who should be easy to beat. how can you lose like this? he really isn't even a democrat. he said he is a socialist. i think he may be a step beyond a socialist. she's not doing well. she's about tied in iowa. she's losing new hampshire, which is sort of amazing. >> donald trump clearly enjoying himself, zach, right now. you can talk about the new polls on the republican side, but right now, trump is the front runner by a lot nationally and by a lot in new hampshire. he has a real shot in iowa as

well. >> that's kind of surprising actually. we thought it appeared from a lot of recent polling that ted cruz would surge in iowa, but recent polls out in the last couple days show trump is back on top in that state. you know, if he has a commanding performance in iowa and a commanding performance in new hampshire, you can see donald trump winning the first two states. from there, what's next? >> warm up the bus. >> warm up the bus. look, rand paul will not be on the debate stage with the shakeup. you have to think three weeks out, is the republican field going to win? i expect it to happen before now. it hasn't happened. what is the next catalyst for the big republican field? is it debate? not until voting in iowa or new hampshire? zach? >> if you are in it at this point, i have to think you are in it through the voting in the first two states.

maybe iowa, probably new hampshire. you have to put in the time. you criscross the state. you have to run on fumes. >> we are hearing jeb bush is drawing bigger crowds now. he used to draw 200. now 300 to 500. is there a crowd for jeb momentum? >> our reporter brianna keilar noticed this that jeb has had trouble getting crowds. it hasn't been represent seed i the polls recently. the most natural fit for him is to make a play in new hampshire. we will see what happens. the crowds are a leading indicator. we have not seen that yet. >> zach, let me ask about the state of the union. the white house says it is not laying out specific policies.

what i always find interesting at this time of election cycle is all of the candidates in the audience watching. ted cruz, marco rubio, rand paul, bernie sanders. all the senators and elected officials. they are there watching. i have to imagine people are watching for their reactions. >> yeah. i can guarantee you, the cut-away cameras will give us plenty to look at there. it is always fun to see them go. no matter if you are running to replace the guy or not. everybody shows up for the state of the union. >> the new speaker of the house behind the left shoulder of the president. >> one or the other. >> right shoulder on tv. zach, nice to see you. thank you for getting up early for us. >> thanks. >> you can tune in for cnn's live coverage of the state of the union with erin burnet at 7:00 and then ac 360 followed by the state of the address at

9:00. the republican response by south carolina governor nicki haley. we have breaking news this morning. a deadly explosion in istanbuis turkey. the province governor announced ten people dead and 15 wounded. this happened in the area which is a tourist hub of the city. i want to bring in senior international correspondent arwa damon live on the phone for us from istanbul. arwa, what are you learning? >> reporter: the explosion happened at 10:15 in the morning. just about when this particular area would begin to see that tourism traffic. this is the heart, the very center of istanbul historic tourist district. it is among the top, if not the top sites and areas for those visiting the country to go to.

now we do not yet know the nationalities of those who were killed. local media is, however, reporting that there were some foreigners among those casualties. no claim of responsibility just yet. a lot of speculation this is an act of terrorism. this is a country that has faced sadly devastating attacks over the last seven months with 30 killed in the bombing along the turkey/syria border and the biggest attack with the suicide bombings in the capital of ankara. the attacks were according to the turkish government were the work of isis. for the last few months if not longer, turkish forces have rounded up hundreds of

individuals with suspected ties to terrorism and also uncovering various suicide vests. turkey is in a precarious situation at this time. battling the spillover of the effects of isis. it is battling against the pkk, the pro kurdish separatists that are in the southeastern portion of the country and at this stage, though, we do not yet know exactly what caused the explosion, but this is going to most certainly be an issue if it is confirmed a terrorist attack, causing widespread fears. germany is warning to stay away from crowded areas and stay away from tourist areas. i was saying this is a terrorist

attack, given the location it took place, is not only going to devastate those who have loved ones here, but potentially for the country's tourism industry and that will have a devastating effect on the economy. >> arwa damon in istanbul for us this morning. 10 people killed and 15 wounded in a bomb blast this morning in the sultanahmet square. we will continue to follow that this morning. following your money. futures are lower at this hour. global stock markets are mixed. tonight, the president has his final chance to talk about the economy. the presidents get too much credit and too much blame for what happens in the economy during their time. that said, here is the obama economy in three charts. unemployment. jobless rates spiked above 10% in the first year in answer. since, it has been cut in half. 9 million jobs have been added. here is the issue. working americans are not making

as much. median household income has yet to rebound. what did rebound? the stock market. oh, my. since obama took office, the s&p 500 is up 126%. >> a lot. new video capturing the military raid on the mexican drug lord el chapo's hideout. we have the pictures for you next. then, woosh, it's gone. i swear i saw it swallow seven people. seven. i just wish one of those people could have been mrs. johnson. [dog bark] trust me, we're dealing with a higher intelligence here. ♪ the all-new audi q7 is here. ♪

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new video of the bloody early morning raid that led to the capture of mexican drug lord el chapo guzman. mexican authorities storming el chapo's safe house in l os mochis, mexico. he somehow clipped away during the operation. we get more from cnn's martin savidge. >> reporter: good morning. late yesterday, the cnn crew gained access to the safe house in los mochis, mexico. it was in shambles when they got access to it because it was a raid and mini war. one of the things that was

interesting of the video is it reveals the escape mechanism by which el chapo was able to get out of the house. apparently in a closet, secreted small set of stairs gets him down into the sewer system. then the sewer system gets him away from the home. all of that is really kind of revealing as to the kind of detail and planning that he had. then we get to the sean penn interview. a lot of controversy about that. the mexican authorities said that interview was essential to the capture of el chapo. they don't go into great detail as to why, but it is clear the interview in october somehow led them in the direction of several months later, a safe house in january. but still you have to give credit to the mexican special forces. they made the entry and conducted it safely. they only had one slightly wounded soldier. there were five gunmen killed, but no one on the street, no innocent person was injured in

any way. john and christine. thank you. lawyers for bill cosby asking a pennsylvania judge to dismiss the sex assault charges. they claim the d.a. violated the agreement from 2005 with andrea constand. the charges were filed weeks before the statute of limitations expired. tonya couch, mother of the affluenza teen, is expected to be released this morning after posting bail in texas. a judge lowered her bond from $1 million to $75,000. couch accused of helping her son flee to mexico after violation of probation in a drunk driving crash that killed four people. ethan couch is fighting efforts to bring him back to the u.s. let's see what is coming up on "new day." alisyn camerota joins us now from iowa. >> hey, guys. great to see you.

it is zero degrees here in case you are wondering. i am in aimes, iowa. talking to voters ahead of the caucuses. 20 days away. what can we expect from the president at the state of the union? we will get a preview from our white house press secretary josh earnest. lots of developments on the campaign trail, including a shakeup for the gop debate. who makes the cut and who is threatening to boycott? we will talk to chuck schumer and ben warren. we will see you at the top of the hour. >> big day. john kasich surging in the polls. thank you, alisyn. this man is possibly hillary clinton's running mate. for now, he is happy being president obama's housing chief. why he thinks 2016 is a strong year for home buyers when we get an early start on your money next.

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new this morning, a rare glimpse into the deep personal relationship with vice president joe biden and president obama. the vice president sat down with cnn's gloria borger and opened up about the death of his son beau. he said when beau stepped down at attorney general, the family faced financial concerns. the president stepped in. >> he is the only guy in my family that i can confide in because i felt responsibility to do that so he knew where i was in my thinking. i said, you know, my concern is if beau resigns, he has no -- there's nothing to fall back on. salary. i said i worked it out. jill and i will sell the house. we will be in good shape.

he said don't sell the house. promise me you won't sell the house. he will be mad at me for saying this. i'll give you the money. whatever you need. i'll give you the money. promise me. i don't think we will have to. he said promise me. then i'll never forget the eulogy he delivered for beau. when beau had his stroke and it turned out it was the glioblastoma. he came running down the hallway. he said joe, is he okay? his love of family and my love of family. his two children are my granddaughters are my best friends. his number two daughter and my girls vacation together. it is personal.

it's family. >> thanks for that. let's get an early start on your money. asia finished mixed overnight. oil prices tumbling near $30 a barrel. hillary clinton wants to separate millionaires from their money. here is how it works. americans making $5 million a year, would pay 4% additional tax on the income. all other taxpayers unaffected. the clinton camp says it is expansion on the buffet rule named after warren buffet who blames the tax code for his rate lower than his secretary. one whispering running mate for hillary clinton. the housing secretary julian castro. he was on the late show with stephen colbert last night. he told me gop candidates have

alienated hispanics and people of color. >> all of the people from backgrounds, wherever they are from, who hear about a deportation force and that goes contrary to who we are as americans. we have been a nation of immigrants. yes, if some people came over here and they didn't do it the right way, they are undocumented, then that needs to be dealt with. you need to deal with it in a way that is humane. >> and he went on, john berman, to layout the immigration proposal and minimum wage proposal. a lot of things are in lock step with hillary clinton. he knocked donald trump his ideas of competing with china like a trade war. we need to create good jobs in the middle. talking tough with china is not the way. >> he in the keynote. he is rumored as a vp pick from before hillary clinton announced she was running. this is something he is keenly aware of. >> he is aware of it.

he is flattered and focused on the job he has right now. he said it is too early to talk about vice presidential picks. we are here in the early days. not so early anymore. i asked about marco rubio and ted cruz. i asked him whether their policies appeal to latino voters. he said no. not about the person, but the policies. >> all right. a deadly bomb blast in turkey. "new day" picks up that story. >> they are in a tie. >> the inevitable candidate for the democratic nomination may not be so inevitable today. >> if i win and she wins, it's going to be the largest voter turnout in the history. >> he was a democrat before he was a republican. >> if donald trump gets the nomination and wins the election, he will regret having said the things he has said and done. >> i don't think i have ever been more optimistic about a

year ahead than i am right now. >> the president will deliver an unconventional speech. >> president obama will instead outline his vision for the country. alabama on top of the college football world. >> this is "new day" with chris cuomo, alisyn camerota and michaela pereira. >> good morning. welcome to "new day." chris and michaela are in new york. i'm in iowa this morning where later i will interview hillary clinton. the democratic frontrunner battling it out in the hawkeye state with bernie sanders as the two are locked in a virtual tie here. sanders saying the clinton campaign is in serious trouble. he insists the inevitable candidate is no longer inevitable. and she is stepping up attacks against him because she realizes

she might lose. well will talk to her about that. we will talk to vice president joe biden and candidates ben carson and john kasich about the 2016 race and president obama's final state of the union address tonight. i will have more on all >> we have arwa damon on the phone with the latest. >> reporter: we just arrived on scene. this is the heart of istanbul's tourist district where the explosion took place.